MBA: Mortgage applications finally post an increase

Include adjustment for Memorial Day holiday

After several weeks of declines, mortgage applications finally posted a 9.3% increase from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending June 3, 2016.

It’s good news given that the housing market struggled to take off this spring.

This week’s results include an adjustment to account for the Memorial Day holiday.

The boost came in applications came from both the purchase and refinance side. The Refinance Index increased 7% from the previous week, as the seasonally adjusted Purchase Index increased 12% from one week earlier.

The refinance share of mortgage activity continued to hover in the low 50s, decreasing to 53.8% of total applications from 54.3% the previous week. The adjustable-rate mortgage share of activity remained unchanged at 5% of total applications.

The Federal Housing Administration’s share of total applications increased to 13% from 12.5% the week prior, as the Veteran Affairs’ share of total applications dipped to 11.5% from 12% the week prior. The United States Department of Agriculture’s share of total applications stayed frozen at 0.7%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) slightly fell to 3.83% from 3.85 percent.

Staying still, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) remained unchanged at 3.81%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA grew to 3.71% from 3.65%.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.11% from 3.12%, while the average contract interest rate for 5/1 ARMs decreased to 2.96% from 3%. 

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